AAT Level 2 Principles of Costing Practice Questions - AAT Level 2 Certificate in Accounting (Q2022) - Principles of Costing Exam - AAT Level 2 Principles of Costing Practice Questions - AAT Level 2 Certificate in Accounting (Q2022)

Question 1

In the AAT Principles of Costing syllabus, what is the primary purpose of a costing system within an organisation?

To provide management with information to plan, make decisions and control costs To prepare statutory financial statements for HMRC To calculate the corporation tax liability of the business To record only the cash receipts and payments of the business

Correct Answer:

To provide management with information to plan, make decisions and control costs

Question 2

Which of the following best describes a 'cost unit'?

A department or section of the business that incurs costs A unit of product or service for which costs are ascertained A person responsible for controlling a budget The total fixed cost of running a factory

Correct Answer:

A unit of product or service for which costs are ascertained

Question 3

A 'cost centre' is best defined as:

A single unit of product to which cost is charged The selling price charged to a customer A location, function or item of equipment to which costs are charged A profit target set by senior management

Correct Answer:

A location, function or item of equipment to which costs are charged

Question 4

Costs that can be specifically and directly identified with a cost unit are known as:

Indirect costs Fixed costs Period costs Direct costs

Correct Answer:

Direct costs

Question 5

The sum of direct materials, direct labour and direct expenses is called the:

Prime cost Total production cost Overhead cost Marginal cost

Correct Answer:

Prime cost

Question 1

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About this Exam

Prepare with the AAT Level 2 Principles of Costing Practice Questions - AAT Level 2 Certificate in Accounting (Q2022) - Principles of Costing Exam practice quiz. This question bank includes 100 questions covering cost, units, unit, total, and production. Use it to review important concepts, identify knowledge gaps, and build confidence for the related exam, course, or assessment.

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AAT Level 2 Principles of Costing Practice Questions - AAT Level 2 Certificate in Accounting (Q2022) - Principles of Costing Exam

This practice set contains 100 questions from the matching question bank and focuses on cost, units, unit, total, and production. Work through each question carefully, review the provided solutions, and revisit topics that need more study before your next attempt.

This is an independent study resource intended for practice and review; it is not an official examination or an endorsement by any organization named in the title.

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AAT Level 2 Principles of Costing Practice Questions - AAT Level 2 Certificate in Accounting (Q2022) - Principles of Costing Exam

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